Investment Q&A

Q: I'm interested in the Canadian banks due to the recent drop and the dividend yield which is very attractive. I have remained in cash for most of this crisis and am anxious to buy. However, I'm very concerned that we are in for further shocks to the economy given the fallout of this virus. How much exposure on the downside do you see to the Canadian banks' balance sheets? I know that if the market goes down, everything will move in tandem but what I'm worried about is that we are in for a high number of failed small and large businesses. Also, I've left my money in US dollars for the last number of years because I think it's a better place to have money and will be buying Canadian banks listed on the USA exchange if that makes any difference. Thank you as always for your comments.

Q: Hello,

Why is TD and banks in general getting hit hard today?

Thanks!

Q: What do you advise about investing in banks given current market environment. What are the tipping points - pro and con? Which 2 or 3 banks [Canada or US} would you put on a watchlist?

Q: Are you aware of any research that provides detailed analysis regarding oil patch exposure of the big 5 banks?

Q: What would be the top 3 Canadian banks have the best/quickest rebound potential ? thanks

Q: With the current situation, what Canadian banks do you recommend that has the least exposure to energy sector?Secondly is Bank of America a good buy right now?
Thank you.

Q: In a taxable account I have TD and BNS each with $2500 losses should I sell for the capital loss and buy Royal bank. I have capital gains I can write off then

Q: I know you really like BNS but with TD at a 52 weeks low, would you pick it over BNS for a long term holding. (Building a position for dividend income)

Also, can you explain me if there is an advantage to own 2 full positions of banks vs 1 of bank and 1 of SLF (knowing that its your top insurance company pick)

Q: Assuming we get a rate cut of 0.5% by Poloz tomorrow, or, over the next few months, how bad will that impact CIBC's NIM and can we estimate the hit on their earnings? Is one bank more exposed to NIM than others? Regional banks are not reacting well right now. Thank you.

Q: Can I please have your comments on TD's recently announced earnings. Thank you.

Q: Hi 5i,

In my non-reg account I prefer to hold stocks that I can hold onto for a minimum of 3 to 5 years and possibly 10 to 20, that have a yield of around 3% to 5% with the stock price growing +/-5% annually.

Having said that, I am looking to add a stock that would be equal to approx. 1% of total portfolio value.

I am considering adding to my renewable utility stocks (BEP, AQN, INE and BLX which currently total 7.5% of total portfolio value), bank stocks (TD and RY currently 6% of total portfolio value) or telecommunications (Telus or BCE currently 0% of total portfolio). My concern with T and BCE are the current CRTC talks and what may be the market reaction to any deemed negative outcome.

Other than the above listed stocks do any others come to mind that you would recommend at this time?

Please deduct for multiple questions as you see fit.
Thanks!

Q: I have done well with MFC in my riff. No banks. Thin king to sell and buy TD. Your thoughts? Many thanks.
Ron Noble

Q: hello 5i:
recently, I asked a question about WFC. Thanks for your prompt reply. However, it leads to a second part. I already own BNS and BMO in a weighting I'm comfortable with, but do wish to add another financial (not sold on JPM). TD seems to have a large US presence, something I want, while also seeming to find favour with you over the years as a "go to" name in the financial sector. Obviously then (if I have this right), you'd take TD over WFC. But would just adding to BNS or BMO be a viable option? The only factor these banks seem to lack is the larger US presence.
thanks
Paul L

Q: I feel I am over exposed in the Canadian Financial sector with TD and BNS making up 9% and 11% of my portfolio respectively. I also hold 20% VRGO. I wish to sell one bank and increase some of my US equity positions such as MA, V, CRM, MSFT, AMZN for more growth and capital gains. Long term outlook is 5+ years. Does this plan sound reasonable in regards to timing and outlook, and which bank would you prefer to hold?

Q: Good morning, what are your views on Canadian banking industry, and what 2 banks would be your top picks?

Cheers!

Q: I feel I am over exposed to the Canadian Financial sector with TD and BNS making up 9% & 11% respectively of my portfolio. As well, I'm looking for more growth. I wish to sell one position and increase my US equities such as MA, V, MSFT, CRM. Would you consider this a reasonable plan and what bank would you recommend selling? Thank you.

Q: Portfolio analytics suggest that I lighten my financial stocks, which of these 3 banks do you recommend that I sell.
Thanks
Nancy

Q: I noticed a big increase in trading by consumers was reported recently with regards to zero commissions.Is this happening only in US right now or is it available to traders in Canada. What companies and minimum amounts are required to open an account .I realize it is not a stock question,but your valuable team is always there with great infomation.Take as many points.

Q: I have a young person who own TD and FSZ as their only financial stocks. They have been under water since they bought FSZ 4 % weight and wondered if better to sell or buy another financial stock or just hold FSZ and buy a third financial stock? For a young person which financial stock would you recommend if buying a third stock to add to the portfolio?
Thanks

Q: These canadian banks represent 20% of my portfolio, I would like to sell CM as it consists of 25% of the financials and is mostly in Canada . Your thoughts please.